Seller's Guide

Right price

The first big difficulty in a sale is calculating the price of the property. It must be fixed by analogy with the prices of properties in the same area, which are similar in terms of age and quality. Obviously the price is proportional to the dimension of the real estate unit which has to be sold. To avoid possible misunderstanding during the negotiation, it is important to remember that the price of a property, which has previously been inhabited, is not to be calculated in square meters, but as a unit, estimating the property as a whole and not according to the dimensions. The building must not be overpriced compared to its market value, but the claim must be high enough to allow negotiations. The ideal solution is to entrust a real estate professional, an expert in the field, who taking into consideration all parameters, will estimate the right price.

Offer to purchase

Once a potential customer is found, the real estate agency, will have him undersign an irrevocable offer to purchase, sometimes also a small down payment is required, which will be returned, if the transaction fails. The seller may decide to evaluate the convenience of the offer according to his own needs.

Necessary documentation

The seller must give the buyer a copy of the following documentation regarding the property for sale:

  • Contract of purchase
  • Cadastral files
  • Hereditary succession if it is an inherited property
  • Donation deed, if it is a donated property
  • Building licence
  • Documents attesting that the all household installations (plumbing, power. etc.) are in compliance with the law.
  • Certificate of habitability
  • Certificate of land purpose, in case of sale of land.

N.B. It is important, when deciding to sell, to collect these documents in advance and make sure that everything is in order. Many negotiations fail because some essential documents are missing and the buyers are not willing to wait that are produced or rectified.

Preliminary deed of sale

Once the seller has accepted the offer to purchase in the time given, the following phase is the preliminary deed of sale. It is a private act in which the parts establish, declare and reciprocally undersign their will, respectively to sell and buy on the terms indicated in the deed. For this reason the writing of this contract is very important and it has to be written by a professional in the field, who will safeguard the reciprocal rights of the parts, without leaving dark zones. The main elements of a preliminary deed of sale are:description of the property, price of the property, methods of payment, Caution money amount, date of the deed. All notes and clarifications, considered as appropriate, may be inserted in the deed.

Notarial deed of sale

The notarial deed is the real act of sale, by means of which the change of ownership takes places, according to the dispositions stated in the preliminary act of sale. It is important to know in advance the documents needed for the notarial act of sale, the essential ones are the following:

  • Identity card
  • Taxpayer's code number
  • Marital status certificate (if the buyer is not married)
  • Birth certificate
  • Summary of the marriage act (if the buyer is married)- Photocopies of the cheques paid at the preliminary act of sale
  • Photocopy of the cheque paid to the real estate agencyBesides all the documents concerning the property, previously mentioned in the chapter: necessary documents.

N.B: It is not always necessary to have all these documents, some of them can be contained in a single document. Our agency will assist you to simplify as much as possible the attainment of the necessary documents.The agency Sviluppo Casa33 also offers the possibility of stipulating the notarial deeds in-house, inside our notary’s office, guaranteeing maximum privacy.

Seller's taxes

Capital gain
If the house has not been the buyer’s main home and it is sold within 5 years from the date of purchase, the profit made (called capital gain) must be declared in the “Modello Unico” (ex 740) and will be taxed as income. The capital gain is the difference between the price of purchase and the price of sale, net of any other cost incurred for the house, during the ownership, provided that the costs are documentable. 

The following are exceptions to this rule:

  • The properties obtained as a heritage succession
  • The property received as a donation, if they have been built or bought by the donor at least 5 years before the donation.
  • The urban units which, during the period between the purchase (or building) and the sale, have been used mostly as main home by the seller or his family

tax on capital gainsAs for the taxation of these capital gains, since 2006 an alternative system to the one in force has been introduced. The seller indeed has the faculty to ask at the deed of sale, with a declaration given to the capital gains, that a substitute tax of 20% be applied to the capital gains, which are normally subject to income tax.

Real estate agency fee
The commission paid to the agency is usually 3% of the real estate value. Such commission is subject to Vat 22%.

N.B. Should the property be mortgaged, the buyer has to consider that it is necessary to extinguish the loan and cancel the mortgage, or if possible, he can take it over (see loan section).

After the purchase

Once the notarial deed of sale has been signed, the administrative formalities are the following:

Notice of real estate property transfer
This act is required by the anti-mafia law, the seller must notify the sale within 48 hours, sending, to the central police office or the relevant authorities, a form in triplicate denouncing the property transfer of the real estate. Usually it is the notary who supplies these forms.

Notice to the condominium manager
The new owner’s full name, must be notified to the manager, so that he will charge him the service expenses from the date on the sale onward.

Termination of household subscriptions
As an alternative it is possible to let the new owner take over the contracts (gas, power, water, telephone), asking the suppliers to transfer the subscriptions to him.

Useful information

In case the seller sells a property, bought taking advantage of the first home tax reduction before 5 years have passed from the date of purchase, loses the tax reduction enjoyed at the purchase, and is subject to the subsequent sanctions, unless he buys within a year another building which will be his main residence; the tax reduction can be enjoyed without limitations. It is therefore possible to sell a house and buy another enjoying the tax reduction, as long as this happens at a later date.

Tax credit for first home repurchase

A tax credit, covering the registry tax or Vat tax paid for the previous subsidized purchase, is granted to those who repurchase another first home within a year after selling their first home. This credit is not a reimbursement, but it can be deducted from the registry tax due for the subsidized purchase deed, or from the natural persons’ income taxes (modello unico 740/730).

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